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Question
hello Steve,
i'm in a market for a new car, and been scouring the internet for the past week. what i'm looking for is a Honda Civic. well, i think i found one. a dealer not too far from where i live offered me a fully loaded 2013 Honda Civic EX(with NAVI). this is the internet price, with the caveat that i have to take advantage of the price 48 hours after it was offered. the internet price that was given to me was $19,900. the MSRP is $23,105.
my question is, do you think this is a fair price, or should i try to negotiate it even lower? thank you for your time.

Answer
Hello Ron,

Very sorry to take so long getting back to you I have been on vacation this last week and I forgot to suspend my account while I was gone... Let's get to your question:

I'm going to make some assumptions because I don't have enough information to tell you how the pricing looks if I don't.

Assumptions -the car you're looking at is a brand-new 2013 Honda Civic EX-L w/Navi and the 1.8 L engine in a two-door automatic... If it's a four-door automatic or a two-door stick it will only make a very subtle difference.

Currently there are financing incentives (low APR), a small cash rebate and dealer cash available on 2013 Honda Civic's these programs run until 3 March 2014. The low APR is .9% interest financing for up to 60 months and 1.9% financing for 72 months

Hello Ron,

Very sorry to take so long getting back to you I have been on vacation this last week and I forgot to suspend my account while I was gone... Let's get to your question:

I'm going to make some assumptions because I don't have enough information to tell you how the pricing looks if I don't.

Assumptions -the car you're looking at is a brand-new 2013 Honda Civic EX-L w/Navi and the 1.8 L engine in a two-door automatic... If it's a four-door automatic or a two-door stick it will only make a very subtle difference.

Currently there are financing incentives (low APR), a small cash rebate and dealer cash available on 2013 Honda Civic's these programs run until 3 March 2014.

The low APR is .9% interest financing for up to 60 months and 1.9% financing for 72 months. The finance options at these low rates essentially amounts to free financing and has a value to you of approximately $1500 over the term of the loan at 72 months,

The rebate is a $500 student rebate and a $500.00 military rebate which you probably don't qualify for but if you do then there's another 500 bucks sitting there for you to use. Lastly there is currently $1000 dealer cash available on this vehicle which the dealer is not obligated to let you have but most dealers do in order to move the car. I am going to guess that the pricing of $19,990 already has the thousand dollar dealer cash discount included if you read the fine print of the ad. If not then you can negotiate for that money. Also included in the dealer's invoicing on this vehicle is a 3% dealer holdback which he gets paid quarterly which equals another approximately $600 bucks. The standard invoicing on this vehicle with an MSRP of $23,105 is just south of $21,500 lets call it $21,450 sooooooo what does that mean?


$23,105.00 MSRP

$21,450.00       Invoice
(1,000.00)      Dealer Cash
  (600.00)      Dealer Holdback
___________  
$19,850.00       Bare bottom price

and if you can buy this car for $19,900 and can finance it at 1.9% interest for 72 months or .9 financing for 60 months then you should buy the car there is no more meat on the bone.

One thing to be aware of on these new vehicles that are not the cure in your model is that they do have a blue book value already but even the used car blue book value on these new cars is over $21,000 and those cars would come with no incentives at all except the certification goodies (low rate but not .9% and a better warranty) if you are able to buy the vehicle for the 19,900 then the dealer will be making approximately 400 bucks which is what I consider to be a fair profit for his $20,000 investment.

Feel free to ask as many follow-up questions as you want I am here until you are completely satisfied and can give me perfect survey results of 10 across the board with maximum bonus points.... Good luck let me know how it goes

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Roger Alvey

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I can answer any question about the car buying process. I am a recognized industry expert on all issues regarding auto finance, including sub prime and buy here pay here financing, I can answer questions about car lock out systems, GPS monitoring by your bank, and about auto recovery methods and defenses. I am a 20 yr car industry expert and can tell you what to look for in a used car, how to negotiate the deal, help with how to market your own car, and how to negotiate with the internet department of any car store. I can tell you every single way the dealer is set up to beat you and how to avoid those traps, I can discuss all aftermarket and extended service contract products you will be offered in the finance process, I have lectured extensively on "The Best Way to Buy a Car" to civic groups and university students. I am a credit expert and can tell you what the dealer and banks are looking for and the rate you can expect to pay. HERE IS THE LINK TO MY OTHER ALLEXPERTS CATEGORIES WHERE I HAVE ANSWERED LOTS OF QUESTIONS http://www.allexperts.com/ep/3440-114948/Used-Cars/Roger-Alvey.htm HERE IS A LINK TO MY BLOG http://thecarguyz.wordpress.com/

Experience

20 years industry experience in top management of dealerships and dealer groups. Recognized industry expert since 2004 in the Top 10 industry experts for The Gerson Lehrman Groups Auto Industry Council. I also do consulting work for Atheneum Partners, Expert 360, Expert Connect and Coleman Research. I have been a franchise owner and understand all facets of the auto industry from the time the car leaves the factory until it leaves the lot with it's new owner. I have written training materials for both the prime and the subprime sales and finance process.

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NADA, OADA, NFIB, State Certified Used Car Appraiser

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Special Finance Insider, Dealer, and Automotive News, Gerson Lehrman Group Auto Industry Council News (frequently)

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Willamette University - Salem Oregon BA Economics Willamette University Graduate School of Business - Econometrics Statistics

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